Prime Minister Junichiro Koizumi said Wednesday he has told Financial Services Minister Heizo Takenaka to try to resolve differences within the ruling bloc over whether to allow life insurers to cut yields guaranteed to policyholders.
"I told (Takenaka) to make a judgment (on the issue) after listening to more opinions from the ruling camp and other circles," Koizumi told reporters after Takenaka briefed him about ongoing debate on the issue.
Takenaka "explained to me that there are (still) pros and cons" being expressed about the matter by the ruling camp, particularly the dominant Liberal Democratic Party, Koizumi said.
The Financial Services Agency has drawn up a revision to the Insurance Business Law to allow life insurers to lower guaranteed yields on outstanding policies to help life insurers tackle negative spreads -- the gap between returns on their investments and rates of returns they promised to policyholders.
The government will submit the amendment to the Diet before the June 18 end of its current session.
But some senior governing lawmakers question the legislation, saying pursuing the responsibilities of insurers' management should come first.